Brexit blamed for central bank failures



Matthew Lesh quoted in The Independent

In the Media

IEA research referenced in The Independent

Julian Jessop quoted in The Telegraph

IEA Economics Fellow Julian Jessop has been quoted in The Daily Telegraph critiquing the argument that Brexit is the main cause of the UK’s economic stagnation, with growth expected to have contracted in Q4 of 2023.

The article said:

“The Institute of Economics Affairs argued the inflation crisis was worse in Britain because the Bank of England over-stimulated the economy with low interest rates, not because of Brexit.

“Julian Jessop, fellow at the IEA, said the analysis ‘ignores many other factors that may also have changed, including the different impacts of shocks such as Covid and the energy crisis, and the different policy responses in individual countries.’

“He added: ‘These models also assume that any hit from Brexit is permanent and irreversible. Investment in particular should continue to recover as uncertainty clears.

“’Exports and imports should also pick up again as businesses adjust and as new trade deals come online’.”

Read the full piece here.